Concerns raised in St Kitts & Nevis parliament about FACTA

Concerns were raised in parliament Tuesday about the US Foreign Account Tax Compliance Act – FATCA, and its likely impact on the federation. The act, described as a tax act of the American government that the federation is being asked to enforce was being debated in the National Assembly Tuesday, reports WINN FM.

Financial institutions in the federation will under FATCA, be expected to fulfill a requirement to report on US persons income to facilitate US collection of taxes. Opposition Senator Nigel Carty warned the House that the Bill was likely to affect American investment in St. Kitts and Nevis.

The former education minister suggested, among other things that the US was seeking repatriation of US businesses overseas. Foreign Affairs Minister Mark Brantley was at pains to explain that ordinary Kittitians and Nevisians would not be affected, because the aim is for the US to collect taxes from its overseas citizens.

Prime Minister Timothy Harris, speaking earlier during the parliamentary proceedings, said it was important for St Kitts and Nevis to comply with the demands of FATCA. Nine Caribbean countries and territories are reported to have already signed on to FATCA.